Critical Comparison: Worldline (OTCMKTS:WWLNF) vs. Sezzle (NASDAQ:SEZL)

Worldline (OTCMKTS:WWLNF) and Sezzle (NASDAQ:SEZL) are both business services companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, risk, earnings and dividends.

Valuation & Earnings

This table compares Worldline and Sezzle”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Worldline	$4.56 billion	0.11	-$5.83 billion	N/A	N/A
Sezzle	$450.28 million	5.76	$133.13 million	$3.74	20.53

Sezzle has lower revenue, but higher earnings than Worldline.

Institutional & Insider Ownership

2.0% of Sezzle shares are held by institutional investors. 49.5% of Sezzle shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Worldline and Sezzle’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Worldline	N/A	N/A	N/A
Sezzle	29.57%	88.61%	36.38%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Worldline and Sezzle, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Worldline	0	0	0	0	0.00
Sezzle	0	2	3	1	2.83

Sezzle has a consensus target price of $113.00, suggesting a potential upside of 47.15%. Given Sezzle’s stronger consensus rating and higher probable upside, analysts clearly believe Sezzle is more favorable than Worldline.

Volatility & Risk

Worldline has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500. Comparatively, Sezzle has a beta of 8.57, suggesting that its share price is 757% more volatile than the S&P 500.

Summary

Sezzle beats Worldline on 12 of the 13 factors compared between the two stocks.

About Worldline

Worldline SA provides payments and transactional services to financial institutions, merchants, corporations, and government agencies in Northern Europe, Central and Eastern Europe, Southern Europe, and internationally. The company operates through Merchant Services; Financial Services; and Mobility & e-Transactional Services segments. The Merchant Services segment offers commercial acquiring, terminal, omnichannel payment acceptance, and digital retail services. The Financial Services segment provides issuing processing, acquiring processing, digital banking, and account payments services. The Mobility & e-Transactional Services segment offers trusted digitization, e-ticketing, and e-consumer and mobility. The company was formerly known as Atos Worldline S.A.S. and changed its name to Worldline SA in April 2014. Worldline SA was founded in 1973 and is headquartered in Puteaux, France.

About Sezzle

Sezzle Inc. operates as a technology-enabled payments company primarily in the United States and Canada. The company provides payment solution in-store and at online retail stores; and through proprietary payments solution that connects consumers with merchants. It also offers Sezzle Platform that provides a payments solution for consumers that extends credit at the point-of-sale allowing consumers to purchase and receive the ordered merchandise at the time of sale while paying in installments over time; Pay-in-Four, which allows consumers to pay a fourth of the purchase price up front and then another fourth of the purchase price every two weeks thereafter over a total of six weeks; Pay-in-Full that allows consumers to pay for the full value of their order up-front through the Sezzle Platform without the extension of credit; and Pay-in-Two and other alternative installment options, which allow consumer to pay half of the value of their order up-front and the second half in two weeks. In addition, the company provides Sezzle Virtual Card that allows consumers to access the Sezzle Platform in the form of close-end installment loans and shop with merchants that are not integrated with Sezzle; Sezzle Anywhere, a paid subscription service that allows consumers to use their Sezzle Virtual Card at any merchant online or in-store; Sezzle Premium, a paid subscription service that allows its consumers to access large, non-integrated premium merchants; and Sezzle Up, an opt-in feature of the Sezzle Platform. Further, it offers Long-Term Lending through collaboration with third-party lenders and Product Innovation. Sezzle Inc. was incorporated in 2016 and is headquartered in Minneapolis, Minnesota.